What Should i pay off first ?

Debbiem

I have a few store cards, a loan and two credit cards to pay off, and also a £1500 overdraft - my first thought on my becoming Debt free is to throw any extra money at the highest APR items first, but now im wondering if i should pay the minimums on the cards etc and leave any extra cash in the bank in an attempt to pay off some of the overdraft ?

Any advice ?

I have the following bills

argos card £495
Barclaycard £1589
Natwest CC £3508
Homebase £198
Studio account £96

loobyloo1980

what are the APRs? basically, I would go on the snowballing site https://www.whatsthecost.com and enter all the specifics in there and it will tell you the best order to pay everything off in to save you the most in interest.

Luke

The interest rates are important, but so is simplicity. You have five debt accounts, you could easily reduce this to two, Barclaycard and Natwest. Once you have done this you would have less direct debits etc and money will be easier to manage. Naturally you will also want to switch these balances to 0% deals.
This would take no time to do. Good luck

Debbiem

Thanks Everyone

I did the snowball thing and the overdraft is second from last - so i guess i will leave that for a while.

Ive got a second interview for a job tomorrow so need everyone to send me good vibes that i actually get it, so i can start paying off these debts faster !

MinnieSpender

Debbie - best of luck with the interview tomorrow. I hope you get it.

I'd probably get rid of the little ones asap (that's what I've done/am doing). It might be daft, but I feel happier knowing that I've paid at least some of them off and it makes it easier to deal with the situation.

nellis10

I agree with Minniespender...set yourself an acheivable short term target to get rid of the Homebase and Studio cards...that way you can keep your motivation high for the remaining cards. Also these store cards tend to have a much higher APR than CCs.

Good luck with the job interview...fingers and toes crossed!!

Broken_hearted

Good luck with the interview. As for the debt get rid of store cards first they are quite low amounts and the boost it gives you (plus extra money) will spur you on to get rid of the others quicker.